Babylon Advances Native Bitcoin Collateral Plan for Aave V4
- —Collateral stays in BTC while liquidations settle in WBTC
- —Permissionless liquidations would run without wrapping the borrower's bitcoin
- —Risk settings and Aave governance votes have yet to be completed
Why it matters: Approval would make BTC a first-class collateral in DeFi's largest lender, deepening bitcoin liquidity and demand on-chain.
Source: The Defiant